Cost NRV January 1, 2019 December 31, 2019 December 31, 2020 December 31, 2021 $50,000 64,000 71,000 75,000 $50,000 60,000 70,000 78,000
Cost NRV January 1, 2019 December 31, 2019 December 31, 2020 December 31, 2021 $50,000 64,000 71,000 75,000 $50,000 60,000 70,000 78,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 3MC
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Question
Inventory Write-Down The following are the inventories for the years 2019, 2020, and 2021 for Parry Company:
Required:
1. Assume the inventory that existed at the end of each year was
sold in the subsequent year. Prepare
lower of cost or net realizable value for each of the following
alternatives:
a. allowance method, perpetual inventory system
b. direct method, perpetual inventory system
2. Next Level Explain any differences in
income between the two methods
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